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Openreach Slash FTTP Broadband Prices for More New Build Homes

Thursday, October 25th, 2018 (11:00 am) - Score 6,659

Openreach (BT) has announced that they will drop the price of their 1Gbps Fibre-to-the-Premises (FTTP) based ultrafast broadband ISP network infrastructure by 75% for new homes in the UK (focus on smaller developers), which aims to “encourage house builders to provide all new homes with full fibre“.

At present the operator already offers all new developments of 30+ homes the ability get FTTP built for free. By comparison the new scheme will also offer a “revised rate card” to smaller developers / projects who may be building between just 2 to 29 premises in an area (developers can register here).

Under this approach the developers will be paying a set contribution for the size of the site that is “more than 75% less, on average, on the current contribution of c.£25k per site“. The operator suggests that more than 40,000 homes across 5,000 small developments per annum nationwide could benefit.

By comparison the existing scheme for developments of 30+ premises claims to already be making full fibre available to more than 80% of UK new build plots being registered with Openreach since it launched in 2016, with some 4,700 new developments covering more than 600,000 premises.

Kim Mears, Openreach’s MD of Strategic Infrastructure, said:

“Our existing offer already provides huge benefits to both buyers and builders alike, but we wanted to go further and make sure everybody moving into a new build property can enjoy the advantages of Fibre-to-the-Premises broadband.

The UK’s is a world leader in digital infrastructure and services today, but as the digital revolution continues at an ever increasing pace, and our demand for data grows, we need to make sure this country stays ahead of the curve by building fast, reliable networks that cater for all the activities we’ll want to do online in the decades ahead.

Our new offer provides a low cost option to housebuilders and we hope it will help encourage the adoption of this future-proof technology across smaller developments so that no-one’s left behind.

We fully support the government’s intention to make full fibre broadband mandatory on all new builds and we’re working closely with DCMS (Dept for Digital, Culture, Media & Sport) and housebuilders on how best to deliver this.”

Margot James, UK Minister for Digital, said:

“We’re building a Britain that’s fit for the future, and recently announced our plans for a national full fibre broadband network. Ensuring all new developments, large or small, can access full fibre technology will be instrumental in delivering this, and we welcome Openreach’s plans to reduce costs to developers by 75%.”

The new scheme, which will launch on 1st November 2018, comes as the Government plans to consult with developers and network infrastructure providers across the UK this autumn – with the intention of making full fibre broadband infrastructure mandatory for all new build sites. This forms part of the recent Future Telecoms Infrastructure Review (FTIR) proposals.

All of this will of course form part of their overall “Fibre First” strategy, which is currently working to extend FTTP coverage to 3 million UK premises by the end of 2020 (March 2021 financial). After that they also hold an ambition to deliver 10 million by around 2025 “if the right conditions are in place” (the latter depends on the outcome of on-going negotiations with Ofcom etc.).

Mind you, in the current aggressively competitive climate, not going to 10 million would be almost unthinkable for Openreach (they have to keep ahead of the game or risk being left in the dust). As an operator, they certainly have the resources to deliver on their ambition if they so wish, although there are some problem areas (here).

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By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
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14 Responses
  1. Nigel J S Steward says:

    I believe that local planning authorities (“LPAs”)should require developers to:-

    1. Install ducts to each property, through which any ISP can blow fibre. I’m concerned that things are shaping up for BT to have a monopoly on new developments.

    2. With the move away from vehicles with internal combustion engines LPAs should also require every property to be provided with a high capacity EV charging point. If this is not done concurrently with the development then there will be much disruption downstream when there is no alternative to a new EV.

    1. Fastman says:

      they do not a monopoly actually and there are number of sites where there is no openreach network on them. now they are a monopoly !!!!

    2. Mike says:

      If people are stupid enough to buy new builds without proper internet they have no basis for complaints in the future and deserve what they get.

      Also I think the Church of Climatology and its followers have already caused enough damage to the economy with their red tape, if peoppe want chargers they should pay for them themselves.

    3. REGIS says:

      Last time i checked a not insignificant amount of the uk’s power came from gas and coal burning…… and they want us to use more power to charge our fancy “clean” cars that have made several thousand metric tons of pollution in manufacturing and transport costs before they even leave the forecourt?

      Hope everyone is ready to have the price of power rise by several hundred percent to cover the billions the gov will loose in tax from proper cars.

  2. Simon Roberts says:

    How can I find out if my new property is getting FTTP? The sales rep doesn’t know.

    1. Fastman says:

      if he doesn’t know I would assume not !!! what your development . and who is your developer and how many homes on the development

    2. Rich says:

      Ask the sales rep to ask the site manager. If the site manager doesn’t know… Then I guess you’re not getting any internet at all.

    3. Mike says:

      Judging by the quality of new builds nowadays it will probably need rebuilding in a decade so you can add fiber then.

  3. Meadmodj says:

    OR already offer FTTP “free” to developments of 30 or more homes. This proposal is regarding smaller developments.

    People purchasing new dwellings are very dependant on the developer engaging a provider in good time before ground works are planned not started. There are many instances where small developments only call on Openreach as the houses are actually being built. It is the developers choice which company to work with.

    A small development of 8 large detached properties have “chosen” Virgin Media. So the new occupant’s choice of provider is now fixed for the foreseeable future.

  4. Gary says:

    Is there any detail on the actual costs to developers from OR ? how does it compare to what they’re quoting for FttpOD?

    1. Meadmodj says:

      That is probably commercial but will be a lot less per premise than an individual FoD simply as cost is shared. With the average developer contribution on small developments reducing by 75% means we are probably now talking around £350-400 per premise. Other providers also offer rebate or no cost installation options and may offer other facilities such as centralised terrestrial/satellite service to avoid aerials etc so it can get very complex. The biggest issue for the developer and their contractors is whether the materials or work will be completed when they need it.
      The developer’s conditions will probably prevent overbuild some years after the completion of the development inhibiting others even if commercially viable. The issue for the occupant is not all FTTP is the same.

    2. Fastman says:

      Openreach FTTP) Offer is based on site being a greenfield greenfield site and therefore no copper in installed in that build only Fibre

  5. Gary says:

    Personally i agree with Mike regarding buyers of newbuilds with no decent internet, why should they be any different to buyers of old existing properties with no/poor internet.

    I don’t see why OR should be expected to do any of this for free, and certainly they shouldn’t be forced to. Developers on the other hand should be made to install the ducting etc on their site costing that into the sale price of the homes, after that property owners can pay to have fibre installed same as everyone else has to.

    If OR choose to install speculatively then that’s up to them, same for any other provider.

  6. Mitchel Taylor says:

    I am building a site with 11 houses and with to no your cost or credit to fit super fast fibre ,
    Site is ramsgate kent Ct125es
    Thank you

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